So with the new W-4, should I be completing all the steps or can I just do Step 1 (personal info) and Step 5 (signature) if I want the standard withholding? I heard someone say that's what you do if you want the most tax taken out.

If you just complete Steps 1 and 5, you'll get the standard withholding which assumes you're single with one job and no dependents or other adjustments. This might result in roughly accurate withholding if that matches your situation, but it's not necessarily going to withhold the maximum amount. If you want to ensure you don't owe money at tax time, you have better options than skipping steps. The best approach is to actually complete Step 2 if you have multiple jobs or a working spouse, and Step 4(c) where you can enter an additional amount to withhold from each paycheck. Even putting an extra $20-50 per paycheck in 4(c) can help prevent owing at tax time if you're concerned.

I used it last year and it was pretty helpful. It asks a bunch of detailed questions and then gives you exact instructions for filling out your W-4. The key is being honest and thorough with the information you provide.

Does Cash App Taxes handle 1099-K forms? I started doing some gig work through platforms that give those and heard some tax software struggles with them.

Yes, Cash App Taxes handles 1099-K forms with no problem. I had a 1099-K last year from selling stuff online, and it walked me through the whole process step by step, including helping separate my actual income from the total transactions. The only limitations I've found are for really complex situations like foreign income reporting or multiple state filing (more than 2 states). But for most people including gig workers, it works great and remains completely free.

Be super careful with random codes! A lot of those "discount codes" are actually affiliate links where someone else gets credit (and potentially access to your info). Some are legit retailer promos, but it's hard to tell the difference. I'd stick with official discount channels like Costco, student discounts, or the official IRS Free File program. The risk isn't worth saving a few bucks if it means compromising your financial data.

I used one of those Slickdeals codes last year and it worked fine - saved about $30. But you should definitely only use codes posted by established members with good reputation scores. And NEVER use a code that requires you to give someone else access to your account or use their email.

4 Do these services charge a lot more for handling 1099 income? I've heard they upcharge significantly once you mention self-employment.

2 They do typically charge more for 1099 income compared to simple W-2 returns, but it's usually based on complexity rather than a flat upcharge. In my experience, it was about $75-100 more than what friends paid for their W-2-only returns. The main factor is how many different 1099s you have and whether you have organized expense records. If you come prepared with categorized expenses and clear records, they can process everything more quickly which keeps the cost down. Most places will give you a price estimate upfront after a quick look at your situation.

11 How do you estimate what you need to pay if you don't have the return done yet? That's always confused me about extensions.

Thanks for bringing this up - I don't have employees right now but I'm planning to hire a part-time assistant next quarter. Would the non-discrimination rules apply even for part-time workers? Or is there a hours-worked threshold?

For health insurance specifically, the non-discrimination rules generally apply to employees working 30+ hours per week (considered full-time under the ACA). Part-time employees working fewer hours typically don't need to be offered the same health benefits. However, if you establish a health reimbursement arrangement (HRA) or other formal health benefit plan, different rules might apply. With a QSEHRA (Qualified Small Employer HRA), for example, you'd need to offer the same benefits to all eligible employees, but you can exclude part-time workers.

That's actually incorrect and could get you in trouble during an audit. Health insurance for >2% S Corp shareholders can't be handled through an accountable plan. It must be included on your W-2 as income (though not subject to FICA) and then deducted on your personal return. The IRS has specific rules for this situation outlined in Notice 2008-1. Using an accountable plan for health insurance reimbursement for a >2% shareholder is incorrect treatment and could result in the deduction being disallowed plus potential penalties.

That's actually really helpful to know! The full amount is a bit tough for me right now. How much is the interest rate if I go with a payment plan? And are there any specific issues with setting one up as an international student?

The interest rate is currently around 5% (it's the federal short-term rate plus 3%), and it's compounded daily. There's also a one-time setup fee of about $31 if you set up direct debit payments online. For international students, the main consideration is making sure you can complete all payments before your visa expires if you're planning to leave the US after graduation. Also, ensure your payment method will work internationally if you'll be making payments after returning to your home country.

Is that the same as the "substantial presence test" form? My tax software mentioned something about that but I wasn't sure if it applied to me.